Versana announced that four new Wallstreet banks, Deutsche Bank, Morgan Stanley, U.S. Bancorp and Wells Fargo, have joined its data and technology platform as investors.
The four banks have invested capital in the platform, which is touted to reshape the syndicated loan market, and will contribute loan data and become its key clients.
In the funding round, Versana has secured $40m in new equity capital, including follow-on investments from founding investors Bank of America, Citi and JP Morgan.
Versana is an industry-backed data and technology company created to address operational inefficiencies and technological fragmentation in the US leveraged loan market.
Last year, the company rolled out its platform as a real-time, multi-tenant solution to centralise corporate loan data directly from books and records of administrative agents.
The platform is said to enhance transparency in loan-level details and lender portfolio positions and help users convert from legacy manual processes to advanced self-service platforms.
The transaction will further support its goal of bringing transformation to the syndicated loan market, said the financial data and technology company.
Versana founding CEO Cynthia E Sachs said: “We’re thrilled to welcome our new investor banks to Versana and appreciate the tremendous value they will bring to our platform.
“We now have seven of the top 10 major US agent banks committed to our game-changing digital data platform, further validating our scalability and mission to modernise the loan market.”
“Converting from analogue to real-time digital processes through a transparent and centralised platform will greatly improve data quality and streamline system fragmentation.
“With the addition of our four new investors, we expect to have more than 75% of US loan market deals on our platform in real-time, an enormous achievement considering we launched the company only one year ago.”
The addition of three additional administrative agents, Deutsche Bank, Morgan Stanley and Wells Fargo, is expected to increase Versana’s future deal coverage for all market participants.
U.S. Bancorp serves as a leading trustee, specifically for CLOs which comprise 70% of the institutional loan market.
It is the first buyside-focused investor to help create a network effect with the asset management community to advance product adoption, said Versana.
Deutsche Bank US loan trading head Mike Weir said: “The innovation that Versana is bringing to market is exactly what’s needed to increase velocity and spur growth for the entire industry. We are glad to join our peers in this effort to propel the market forward.”
U.S. Bank global corporate trust and custody president John Stern said: “U.S. Bank is proud to be the first trustee on the platform, given the critical function we provide within the loan lifecycle.”
Wells Fargo corporate and investment bank leveraged syndicate head John Gregory said: “We are happy to join our industry peers in standing up a platform, Versana, that aims to digitally transform and make more efficient the syndicated leveraged loan market to the benefit of all market participants.”
